Landlords across England suffering from Covid related rental arrears have been buoyed by the government’s announcement that is setting up a new £65m debt fund.

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After last week’s recent announcement of the fund from the newly ‘monikered’ Department for Levelling Up (no idea what this means), Housing and Communities – which is funding the £65m cash injection, however there is considerable consternation across the sector when it was announced that local authorities will be made responsible to decide which landlords’ should receive funding.

The whole of the sector has called for this type of funding since the beginning of the year.

Housing minister Eddie Hughes says: “We have taken action throughout the pandemic to support the most vulnerable families, and it is vital we continue to provide support as we enter the winter months.

“This new funding will support families that are struggling and help to get them back on their feet as we begin to recover from the Covid-19 pandemic.”

The government’s announced also said it is “grateful” to landlords who have helped their tenants with pandemic rental arrears.

The Joseph Rowntree Foundation claims that nearly 3.8m households on lower incomes are falling into arrears with household bills including rent.

It states that a possible 950,000 households are behind with their rent and around 1.4m are in council tax arrears and energy bills.

An industry trade body spokesman, says: “It is great news that those households worst hit by Covid related arrears may be able to access financial support.

“However, £65m does not fully reflect the scale of the problem. Our analysis has put the figure of Covid rent debts at over £300m.

“With warnings that rent debts could pose a risk to the economic recovery and the Government admitting that many landlords are highly vulnerable to arrears the Chancellor must go further.”

Lord John Bird, founder of The Big Issue, says: “I am very pleased to hear the government has listened to our call to keep people in their homes and stop mass homelessness.

“It is vital that they are taking preventative action to ensure people will not be left homeless this winter.

“The end of furlough and the lift of the eviction ban have posed a very grave danger to everyday families and individuals who are struggling to make ends meet as a result of Covid-19 poverty.